The Biggest Challenge Of Network Marketing

Ban_pyra.gif (No to network marketing). Network marketing is that method of selling and promoting products or services which makes exclusive use of a network of people to achieve their goals. The goods are distributed via the network, they can’t be found in classic shops and in order to buy them you have to become a member in the network.

Most members will just buy products for their personal use only. Others, determined to make a living out of network marketing, will work hard to recruit other people and build themselves a strong downline, which may grant them a nice income level, even if they don’t actively promote the business anymore.

Network marketing is also called multi-level marketing, because of the multiple levels of compensation within the sales force representatives. The more referrals a representative brings into the network, the bigger his commissions will be. When their referrals bring other people in, the first ones will also get commissions on this new level of the network. Compensation levels may go as deep as seven or even ten layers.

This is the dream of every network marketer: to build a downline of active and motivated SVP Antoine Delerme & CEO Craig Jerabeck of 5LINX® Enterprises, Inc.people. That’s where the true money is. However, in order to get to that point, one needs to work hard for many years without any real compensation and under the suspicious looks of their family and friends.

This is the biggest challenge of the network marketer: to overcome objections and suspicions of their beloved ones. It’s easier if both husband and wife are in the same business, but it’s also more risky, as they have all their eggs in the same basket. Besides, the basket will be very fragile for a long while in the beginning of their journey, so it’s probably wiser that one of them keeps a job outside the network.

Suspicions may have a real origin, though, as many pyramid schemes presented and promoted themselves as MLM businesses. When they turned out to be fraud schemes, people turned their weapons against all multi-level marketing businesses, without difference. Those empty network marketing schemes collapsed one after another, leaving most members of the network empty-handed. There were a few members, probably the top ones, who made good money, but when the chain got broken, more than 90% of the participants had to suffer losses and live with that.

Independent, active and persuasive persons have the biggest chances to put network marketing to good use and record levels of success unknown to the biggest majority.

While widely contested, multi-level marketing is still a force today, with giant companies using it as their sole promotion method. Nonetheless, we can observe a shift in the way they do marketing. We see now TV advertisements for MLM businesses, we see print ads, we see representative booths inside shopping centers and malls. Years ago, these practices were unknown to network marketing and it would have been crazy even to think they could be employed to help distributors broaden their downline network.

Further reading:

More topics: Network Marketing, Multi-level marketing, Pyramid scheme, Sales, Business, Markets, Federal Trade Commission, Amway, Direct Selling Association,

Image credits:
Ban_pyra.gif (No to network marketing). (Photo credit: Wikipedia)
SVP Antoine Delerme & CEO Craig Jerabeck of 5LINX ‚ Enterprises, Inc. (Photo credit: Wikipedia)

NetMarketZine is an officially authorized and remunerated associate for recommending high quality products found on this website. Links on this website may be associate links which means if you click on a link of a recommended product, I/we may receive monetary compensation. However, this does not affect any unbiased information presented on this website. The owner of this website is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon properties including, but not limited to, amazon.com, endless.com, myhabit.com, smallparts.com, or amazonwireless.com. Additional affiliate programs and networks may include Avantlink, CJ, Clickbank, Walmart, BestBuy, AliExpress, and others.

You May Also Like These Topics...

Bitcoin Could Possibly Sink Even More, But You Can Still Profit with the Staff at the Blockcharter.

Blind hope for a recovery or perhaps a bull run is one thing every speculator has experienced at least one time. The Professionals at JP Morgan have forecast that bitcoin (BTC) could possibly tumble below $1,260, while banks will not likely reap the benefits of blockchain for a minimum of 3 to 5 years. (Reuters […]

Allegro.ai Launches New Startup and Partner Programs

After receiving investments from leading enterprises Hyundai, Samsung and Bosch, the enterprise focused deep learning computer vision startup allegro.ai is declaring the launch of two important enterprises – The Startup Program and The Partner Network. Founded in 2016, allegro.ai announced this week that it will be making its enterprise grade solutions available to selected startups that demonstrate the […]

Comparing Business VoIP Providers

VoIP has easily replaced the traditional landline. A lot of business owners prefer to use VoIP services and save huge amount of money that would otherwise be spent on efficient communication. Every business depends on internal and external communication to grow and VoIP makes it possible for the business to reach its potential with cheap […]

6 Features That a Data Quality Management Tool Should Have

Data has emerged as a key decision-making tool for businesses today. The data-driven enterprises gather information from all the sources it can, structures this information and then analyzes it to get rich and actionable insights. This data could relate to customers, suppliers or employees depending on the source it comes from and the people it […]

Tags: , , ,
Previous Post

How To Make The Most Of Forum Internet Marketing Strategies

Next Post

How To Achieve Success In Internet Marketing

Leave a Reply

0 Shares
Tweet
Share
Share
Pin